Does auto insurance cover transmission repair?

Auto insurance covers transmission repair if the damage is due to a covered claim. Transmission repairs can cost up to $5,200. If your car breaks down insurance doesn't cover it unless you have mechanical breakdown insurance or special car repair insurance. Standard car insurance doesn't cover mechanical problems like transmission failure.

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Melanie Musson is the fourth generation in her family to work in the insurance industry. She grew up with insurance talk as part of her everyday conversation and has studied to gain an in-depth knowledge of state-specific car insurance laws and dynamics as well as a broad understanding of how insurance fits into every person’s life, from budgets to coverage levels. She also specializes in automa...

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insurance...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years

UPDATED: Jul 14, 2021

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What You Should Know

  • If your transmission is damaged in an accident, your auto insurance company may pay for your damaged transmission.
  • Transmission repair and replacement costs $1,800 to $3,400, while labor costs are $500 to $1,200.
  • Car repair insurance companies, like Carshield, pay for costly and vital repairs.

Does car insurance cover transmission repair? Is there transmission insurance? Auto insurance doesn’t repair a transmission if it breaks down. However, if your transmission is damaged in a collision or accidental damage, your auto insurance may cover it. Depending on the auto insurance coverage type, you could recover damages to your transmission after an accident. This is why understanding auto insurance options is so important.

Can you get transmission repair through mechanical breakdown insurance? Some auto insurance companies won’t cover your transmission repairs, while some services will provide you with the coverage you need. Continue reading to learn how you can get help on transmission repair and replacement costs.

Auto insurance and transmission repairs can be expensive. Although we can’t show you transmission repair quotes in your area, we can help you find cheap auto insurance quotes. Enter your ZIP code in the FREE comparison tool above to compare auto insurance available near you before learning more about whether car insurance covers transmission repair.

Does auto insurance cover transmission repair?

If your transmission was damaged in an accident, your auto insurance company might cover the cost of transmission repair. It doesn’t matter if the damage is minor or major, you can file a claim for damages if you weren’t at fault.

According to the California Department of Insurance, your collision coverage will cover property damage expenses and you will receive reimbursement from the at-fault party’s auto insurance company.

If you are at fault, you will need to have full coverage auto insurance. Auto liability insurance doesn’t have the same perks as collision for extensive damage.

Liability coverage only pays for damages to the other party that you caused in an accident.

Does car insurance cover mechanical problems, such as non-accident repairs? A faulty or worn transmission won’t be covered by your auto insurance company even if your vehicle breaks down. Some auto insurance companies offer mechanical breakdown insurance, which we’ll talk about in the following section.

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Is there insurance for car repairs?

If your car breaks down, does insurance cover it? Although auto insurance companies won’t pay for car repairs outside of an accident, you can get help with car repairs through mechanical breakdown insurance. Some insurance companies don’t offer mechanical breakdown insurance, while other companies provide mechanical breakdown insurance exclusively.

We’ll go through a few sections explaining what mechanical breakdown insurance is and who offers it.

Mechanical Breakdown Insurance

How do I get insurance to cover a blown motor? If your car breaks down, does insurance cover it? Under mechanical breakdown insurance, you may be able to get the coverage you need to cover a transmission repair. But how does mechanical breakdown insurance work?

Mechanical breakdown insurance will pay for breakdowns that occur on your vehicle, but it won’t cover wear-and-tear damage or maintenance. Maintenance could be considered tune-ups, oil changes, tires, or loss caused by the driver.

Mechanical breakdown insurance is the closest thing to transmission and engine insurance coverage.

Companies with Mechanical Breakdown Insurance

Geico is one of the few auto insurance companies that have mechanical breakdown insurance. It’s recommended to policyholders who recently purchased or leased a vehicle. Here’s a video that explains Geico’s mechanical breakdown insurance (MBI).

It’s suggested that mechanical breakdown insurance is cheaper than an extended warranty.

According to the Federal Trade Commission, extended warranties are often called service contracts.

Mechanical breakdown insurance can cost about $100 or less per year with a $250 deductible, but an extended warranty can cost between $350 and $700.

Let’s break that down. What if an extended warranty lasts for seven years? If your seven-year extended warranty costs $350, you can save money in the long-term.

At the estimated $100 per year, the insurance would cost you more money over seven years. But it all depends on the length of the warranty and the specific prices being offered to you. Compare the rates for both options to see what works better for your finances.

CarShield’s Mechanical Breakdown Insurance

CarShield provides mechanical breakdown insurance through contracts personalized for the driver’s vehicle. They maintain the same standards as mechanical breakdown insurance services across the United States.

Therefore, if your transmission breaks down unexpectedly, you should file a claim right away. Also, CarShield will provide service to salvage title vehicles, but you may pay an extra fee.

Does State Farm cover blown engines?

State Farm is one of the top insurance companies in the United States, but they don’t carry mechanical breakdown insurance. However, they have a vehicle repair program that provides a network of repair shops to their customers in case of an accident.

If your engine is blown due to a collision or unexpected damage like a fire, falling object, or theft, State Farm may cover the cost of damages. Be sure to have the right coverage. Always ask a State Farm agent or customer service representative about your options.

Speaking of options, you can find auto insurance options by searching for quotes in your area. Enter your ZIP code in the FREE comparison tool to get started.

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Transmission Repair Cost

The point of having car repair insurance is to avoid the expensive repair costs of transmissions, electrical problems, and other engine issues. Here’s a look into the cost of the transmission repair cost.

Average Transmission Repair Costs
Transmission Repair SevicesAverage Transmission Repair Costs
Transmission Repair$1,800 to $3,400
Transmission Replacement$5,109 to $5,285
Tranmission Labor$500 to $1,200
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Repair, replacement, and labor are just as expensive as the national average for auto insurance. According to RepairPal, you could spend over $5,000 on transmission replacement. With mechanical breakdown insurance, you’d be able to get coverage and avoid high costs.

Does car insurance cover transmission repair?: The Bottom Line

Will my car insurance pay for transmission repair or cover a blown engine? It depends, but the short is yes. Car insurance companies will only pay for damage to a transmission or blown engine if it was involved in an accident. All other unexpected breakdowns are only covered through mechanical breakdown insurance.

Unfortunately, some auto insurance companies don’t carry mechanical breakdown insurance. So, you’ll have to shop for car repair insurance for unexpected malfunction and breakdowns.

You should consider mechanical breakdown insurance if the dealership’s extended warranty is too expensive. Mechanical breakdown insurance may be cheaper, but it depends on the company’s annual cost and deductible.

Now that you know if car insurance covers transmission repair, look for auto insurance quotes now by entering your ZIP code in the FREE comparison tool below.

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Frequently Asked Questions: Does auto insurance cover transmission repair?

Let’s learn a little more about auto insurance and transmission repair through a series of frequently asked questions. We selected these questions because they often appear on search engines across the internet. To supplement your learning, we’ve provided the answers to these questions below.

#1 – Will insurance cover a bad transmission?

No. Auto insurance companies don’t cover a bad transmission. If your transmission was damaged in an accident, you could file a claim to get it fixed.

#2 – Does auto insurance cover mechanical problems, such as electrical problems and transmission failure?

Auto insurance will only cover problems caused by a vehicle accident. Mechanical breakdown insurance could fix sudden breakdowns caused by electrical or engine issues.

#3 – Is CarShield worth the cost per month?

CarShield’s rates are about $100 or less per month. If you have a vehicle close to or over 100,000 miles, the cost is well worth it.

#4 – Does gap insurance cover transmission failure?

No. As comprehensive as gap insurance is, it doesn’t pay for a mechanical breakdown from a transmission or other engine failures.

#5 – Will auto insurance cover a blown engine?

If the blown engine occurs due to an accident, your auto insurance company may cover it if you have full coverage. A blown engine that occurs from wear and tear won’t be covered.

#6 – Does auto insurance cover bad repairs?

No. Auto insurance will only cover damage from accidents.

#7 – How much does a transmission cost to replace?

Transmission repair and replacement costs $1,800 to $5,300.

#8 – Does insurance cover a rental car for repairs?

Rental car dealers have considerable insurance coverage for all of their vehicles. If you’re looking for rental car assistance from your insurance company, ask your auto insurance company if you have rental car assistance or rental reimbursement on your auto insurance policy.

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